Is Your Home at Risk?
The simple answer is that if you have signed a Personal Guarantee your home is the main asset you have – yes.
That said the legal process to obtain the possession or force the sale of a home, has many parts to it.
Obviously, we all hope it doesn’t come to this, but continual concise dialogue is vital.
The usual routes to look to secure your property are twofold:
- Obtain some form of Judgment e.g., a County Court Judgment and then move to an Order Charging Land, or
- A riskier route for a creditor is to look to Bankrupt the Guarantor. We say riskier because the carriage of the case will pass to an independent party – a Trustee in Bankruptcy. This is a complex area and dealt with under our Bankruptcy section.
We used the phrase ‘concise dialogue’ above for a reason, a PG being called in is the precursor to litigation. We aim to avoid this, if possible. Without Prejudice, communications are vital in terms of relating your financial position.
The old adage of truthful transparency is vital because if things are ‘hidden’ and then discovered e.g. the foreign property is excluded, the trust goes and the creditor will look to litigate, the costs of which can be crazy!
We at Bell & Company have helped hundreds of people with Personal Guarantees and fight hard to protect the home.
If you fear your house is at risk, act now as leaving such an important issue to see how it works out, will not help at all.